China acrylic acid may extend gains on tight supply

12 October 2012 10:27  [Source: ICIS news]

SINGAPORE (ICIS)--China’s acrylic acid (AA) prices may increase further in the coming weeks as supply tightened following recent shutdowns at domestic facilities, market sources said on Friday.

AA prices in the Chinese market were assessed at yuan (CNY) 13,000-13,100/tonne ($2,070-2,086/tonne) DEL (delivered) east China on 11 October, up by CNY1,100-1,200/tonne from end-September, according to Chemease, an ICIS service in China.

Among the AA facilities that are currently shut are Shanghai Huayi’s 60,000 tonne/year unit and Shenyang Lahua’s 80,000 tonne/year unit.

Shanghai Huayi’s plant was taken off line on 8 October, with the shutdown expected to last a week, a company source said.

Shenyang Lahua’s unit, on the other hand, was shut because of a power failure on 23 September, with no definite restart date, a company source said.

Japan’s AA major Nippon Shokubai is currently competing for supply in the regional market for its customers, traders said.

The company’s 460,000 tonne/year plant in Himeji, Japan, has been down since 29 September following a fire incident at the site.

Nippon Shokubai is expected to buy 50,000 tonnes of AA from other countries in Asia in next two months, an east China-based trader said.

Most sellers in China were unwilling to sell their cargoes this week, another trader said.

($1 = CNY6.28)

Additional reporting by Liu Lin

By: Viola Pan
+65 6780 4359

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